Scotiabank to buy Citi’s consumer business in Colombia

February 1st 2018 | Multiple countries | Banking | Multiple companies

On January 31st Bank of Nova Scotia, also known as Scotiabank, said that its Colombian subsidiary would purchase the local retail, credit cards and small-and-medium-enterprise operations of Citigroup Inc. The Canadian lender did not disclose the financial details of the deal but said that it would not significantly impact its financial results.

Under the deal, Scotiabank's Colombian subsidiary, Banco Colpatria, will gain 500,000 customers to become the country's leading credit card provider. It will also have control over Citibank's 47 domestic branches and 424 customer service points. Banco Colpatria, the country's fifth-largest bank, currently offers services to 1.5m retail and corporate clients in Colombia through a network of 175 branches.

The deal is in line with Scotiabank's plan to expand its market share in Colombia, Chile, Mexico and Peru. In December 2017 it struck a deal to acquire a 68.2% stake in the Chilean unit of Banco Bilbao Vizcaya Argentaria (BBVA), a Spanish lender, for C$2.9bn (US$2.2bn). The transaction is expected to make Scotiabank the third-largest privately owned bank in Chile and boost its market share to 14%.